TikTok Becoming Source Of Financial Advice For Young People

Would you go to TikTok for financial advice? If you’re among the younger people to whom the social media platform caters, the answer might be yes.

That’s according to a report published on Monday (May 3) in The Wall Street Journal, which noted that the short, easily digestible nature of TikTok’s content makes teens and twentysomethings more likely to delve into complex topics like investing or personal finance. Not to mention that it’s catered to their age group.

“To be sure, TikTok isn’t the only social media platform popular with young people that features financial advice. YouTube and Instagram carry videos with financial content as well,” per the report. “But TikTok is a hit with younger generations in part because of its quick-hit videos, easily navigated swiping functions and highly personalized content suggestions. And the numbers of young TikTok users viewing financial-related content on the platform of late have surged, a trend that many users and industry professionals expect to continue.”

However, the story noted that many financial professionals — and several TikTok users themselves — encourage caution when getting advice from this medium. It can be difficult to discern which TikTok users have actual financial backgrounds. Many of them also “make overly rosy claims” or “broad statements that could lead to significant financial missteps.”

It’s not so concerning to consume general budgeting advice, but investing tips found on TikTok are bit murkier, Brian Walsh, senior manager of financial planning at SoFi, told WSJ, and risky for vulnerable, young viewers to follow without further research. And many Americans — a majority, in fact — are financially illiterate, and don’t even know it.

The story is probably not that surprising for people who have followed TikTok in the past few years. As PYMNTS reported in April, the platform has become a powerhouse in the social commerce world, with TikTok streamers able to affect the course of a product’s destiny with a single post.

The platform has also been courting small to medium-sized businesses, holding an event in March to give SMBs a chance to learn how to use TikTok to promote their brands.